Amazon Web Services Announces the Opening of Data Centers in the Middle East by early 2019

New AWS Infrastructure will enable customers to run workloads in the Middle East and serve end-users across the region with even lower latency

 SEATTLE- Sept. 25, 2017— Amazon Web Services (AWS), an Amazon.com company (NASDAQ: AMZN), today announced that it plans to open an infrastructure region in the Middle East by early 2019. The new AWS Middle East (Bahrain) Region will consist of three Availability Zones at launch. Currently, AWS provides 44 Availability Zones across 16 infrastructure regions worldwide, with another 14 Availability Zones, across five AWS Regions in China, France, Hong Kong, Sweden, and a second GovCloud Region in the US expected to come online by the end of 2018. AWS today also announced it will launch an AWS Edge Network Location in the United Arab Emirates (UAE) in the first quarter of 2018. This will bring Amazon CloudFront, Amazon Route 53, AWS Shield, and AWS WAF to the region and adds to the 78 points of presence AWS has around the world. For more information on AWS’s global infrastructure, go to https://aws.amazon.com/about-aws/global-infrastructure/.

“As countries in the Middle East look to transform their economies for generations to come, technology will play a major role, and the cloud will be in the middle of that transformation,” said Andy Jassy, CEO, Amazon Web Services, Inc. “Some of the most gratifying parts of operating AWS over the last 11 years have been helping thousands of new companies get started, empowering large enterprises to reinvent their customer experiences, and allowing governments and academic institutions to innovate for citizens again. We look forward to making this happen across the Middle East.”

This announcement has been welcomed by political leaders in Gulf Cooperation Council (GCC) states. Countries across the Middle East are looking to innovate, grow their economies, and pursue their vision plans, such as Saudi Vision 2030, UAE Vision 2021, and Bahrain Vision 2030, and cloud technology will be key in helping them achieve this.  His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince of Bahrain, First Deputy Prime Minister, and Chairman of the Bahrain Economic Development Board, commented, “Today’s announcement is a significant moment for Bahrain and the region. For the Kingdom, the expansion of regional cloud capacity builds upon a business environment that is already driving innovation and entrepreneurship, using technology to accelerate economic diversification in Bahrain. Through improved efficiencies, access to new career opportunities, and helping to enhance the delivery of government services, this marks further realization of the principles of sustainability, fairness, and competitiveness that form the core of Bahrain’s 2030 Vision.”

H.E. Khalid Al Rumaihi, Chief Executive of the Bahrain Economic Development Board, said of the news, “AWS’s commitment to expanding its presence into the Middle East and North Africa (MENA) region, from Bahrain, is a major enabler for technology and data-driven business across the GCC. This will benefit global corporates, SMEs, entrepreneurs, and governments alike.  The ability to store and share data at speeds the Gulf has never experienced before has the potential to help companies gain competitive advantage, allowing them to compete more effectively at a global level. Amazon Web Services is delivering the Middle East a world class service. With such a young, technologically adept, and growing population, the Gulf is well positioned to drive innovation in mobile applications and digital services.  I am very eager to see how our region’s entrepreneurs will make use of this exciting opportunity.”

AWS Investing in the Middle East

AWS is growing its presence in the Middle East bringing offices, staff, education, training, startup support, and other investments to the region. In January 2017, AWS opened offices to serve its rapidly growing customer base with a presence in Dubai, UAE and Manama, Bahrain. These offices have been established with teams of account managers, solutions architects, partner managers, professional services consultants, support staff, and various other functions for customers to engage with AWS.

Another investment AWS is making for its customers in the Middle East, and around the world, is to run its business in the most environmentally friendly way. An important criteria in launching the AWS Middle East (Bahrain) Region is the opportunity to power it with renewable energy. AWS chose Bahrain in part due to the country’s focus on executing renewable energy goals and its proposal to construct a new solar power facility to meet AWS’s power needs. The Bahrain Electricity and Water Authority expects to bring the 100 MW solar farm online in 2019, making it the country’s first utility-scale renewable energy project. For more information on AWS’s commitment to sustainability, go to https://aws.amazon.com/about-aws/sustainability/.

AWS also announced that it is supporting the advancement of technology education across the Middle East making AWS Training and Certification programs available to customers. In the education sector, AWS is supporting the development of technology and cloud computing skills at local universities through the AWS Educate program, providing students and educators with the resources needed to accelerate cloud-related learning. This program is now available for students attending institutions such as King Abdullah University of Science and Technology in Saudi Arabia, the Higher Colleges of Technology in the UAE, Bahrain Polytechnic, University of Bahrain, as well as Oman College of Management and Technology, the Jordan University of Science and Technology, and many others across the region.

To support the growth of new business, AWS works with incubators and accelerators in the Middle East to provide resources to startups through the AWS Activate program.  In Saudi Arabia, AWS works with the Badir Program for Technology Incubators and Accelerators at King Abdulaziz City for Science and Technology (KACST) to provide startups with access to technology resources as well as expert advice, education, and training to help promote Saudi youth entrepreneurship and grow new businesses in the Kingdom. To help new businesses across the Middle East go global, AWS also works with a number of local and international accelerators and incubators active in the region such as AstroLabs in the UAE, Cloud 10 Scalerator in Bahrain, as well as 500 Startups, Startupbootcamp, and Techstars, providing training, AWS credits, in-person technical support, and other benefits.

Middle Eastern Organizations Increasingly Moving to AWS

Organizations across the Middle East – in UAE, Saudi Arabia, Kuwait, Jordan, Egypt, Bahrain, and other countries – are increasingly moving their mission-critical applications to AWS.  Startups in the region choosing AWS as the foundation for their business include Alpha Apps, Anghami, Blu Loyalty, Cequens, DevFactory, Dubizzle, Fetchr, Genie9, Mawdoo3.com, Namshi, OneGCC, Opensooq.com, Payfort, Tajawal, and Ubuy as well as Middle Eastern Unicorn Careem, the leading ride-hailing service in the MENA region. Careem runs all of its operations on AWS and over the past five years has grown 10 times its current size each year. “It is great news that AWS is opening a Region in the Middle East,” said Magnus Olsson, chief experience officer and co-founder of Careem. “We have been all-in on AWS since we launched in 2012 and using the scalability of the cloud has helped us to cope with rapid growth. After starting in Dubai, we now serve over 12 million commuters in 80 cities across the Middle East and North Africa, including Turkey and Pakistan – this would not have been possible without AWS. The new AWS infrastructure Region in the Middle East gives us the opportunity to experiment with new Internet of Things (IoT) technologies that, in the future, will give us the ability to run a fleet of self-driving Careem cars comfortably and safely taking passengers to their destinations.”

Some of the Middle East’s most historic and established enterprises are moving mission critical applications to AWS. Enterprises such as Actel, Al Tayer Group, Batelco, flydubai, Hassan Allam, Silah Gulf, Union Insurance, and the United Arab Shipping Company are using AWS to drive cost savings, accelerate innovation, and speed time-to-market. One successful business that used AWS to grow is eCommerce provider SOUQ.com. “AWS has been key to our success throughout our journey of exponential growth in the MENA region”, said Ronaldo Mouchawar, CEO and Co-Founder of SOUQ.com. “Businesses in the region need robust technologies to both scale rapidly and provide world class service to their customers. With innovation being the main focus on the region’s national agenda, the advent of the world’s largest provider of cloud computing in the region is great news for everyone. This will help support the growing demand for cloud technologies as well as accelerate business expansions and success, regionally and around the world.”

Another enterprise using AWS is Middle East Broadcasting Center (MBC), the largest private media company in the Middle East, delivering Arab language content to over 150 million people across the Middle East and North Africa. “AWS has been critical in our digital transformation initiatives,” said Joe Igoe, MBC’s Group Director of Technical Operations. “Knowing we will have AWS infrastructure close to our viewers is invaluable for us.  AWS has helped us speed up innovation and rapidly expand into a wider range of scalable and reliable digital services, such as our Video on Demand platform, Shahid.net. During the holy month of Ramadan, TV viewership spikes dramatically. This year, we successfully scaled our online platform to support a massive increase in traffic and delivered hundreds of thousands of concurrent video streams and dozens of petabytes of content to our viewers.”

Government organizations are also working with AWS to lower costs and better serve citizens in the region, including the Bahrain Institute of Public Administration which has moved their Learning Management System to AWS, reducing costs by over 90 percent. Another government organization using AWS is the Kingdom of Bahrain Information & eGovernment Authority (iGA). The iGA is in charge of moving all government services online and is responsible for ICT governance and procurement for the Bahrain government. Earlier this year the iGA launched a cloud first policy, requiring all new government ICT procurement to evaluate cloud-based services first. Mohamed Al Qaed, Chief Executive of Kingdom of Bahrain iGA said of the announcement, “AWS forms the backbone of our digital government initiatives so the news that an AWS Region is coming to our country is warmly welcomed by us. Through adopting a cloud first policy, we have helped to reduce the government procurement process for new technology from months to less than two weeks. We are in the process of migrating 700 servers with more than 50 TB of data to AWS with the goal of decommissioning our hosting platform by the end of 2017.  We have also started to migrate systems of national significance, such as our Bahrain Data Locator, and supporting other entity system migrations, like the Ministry of Education LMS that has 149,000 users, with more planned on the way. As we move more mission critical workloads to AWS, we look forward to even greater efficiencies and being able to complete our mission to become eGovernment & ICT Pioneers.”

In addition to established enterprises, government organizations, and rapidly growing startups, AWS also has a vibrant AWS Partner Network (APN) across the Middle East, including APN Partners that have built cloud practices and innovative technology solutions on AWS. APN Consulting and Technology Partners in the Middle East are helping customers to migrate to the cloud include Al Moayyed Computers, Batelco, C5, du, DXC Technology, Falcon 9, Infonas, Integra Technologies, ITQAN Cloud, Human Technologies, Kaar Technologies, Navlink, Redington, Zain, and many others. For companies looking to join the APN or for the full list of members please visit: https://aws.amazon.com/partners/.

About Amazon Web Services

For 11 years, Amazon Web Services has been the world’s most comprehensive and broadly adopted cloud platform. AWS offers over 90 fully featured services for compute, storage, networking, database, analytics, application services, deployment, management, developer, mobile, Internet of Things (IoT), Artificial Intelligence (AI), security, hybrid and enterprise applications, from 44 Availability Zones (AZs) across 16 geographic regions in the U.S., Australia, Brazil, Canada, China, Germany, India, Ireland, Japan, Korea, Singapore, and the UK. AWS services are trusted by millions of active customers around the world monthly — including the fastest growing startups, largest enterprises, and leading government agencies — to power their infrastructure, make them more agile, and lower costs. To learn more about AWS, visit https://aws.amazon.com.

 

About Amazon

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services pioneered by Amazon. For more information, visit www.amazon.com/about and follow @AmazonNews.

Bahrain to showcase innovation at technology week

Programme to focus on impact of Fintech, artificial intelligence, cybersecurity and cloud computing on the future of the GCC

The Bahrain Economic Development Board (EDB) today announced the Kingdom will host the Technology Week from 24 – 28 September 2017, designed to showcase and dissect how disruptive technologies and digital trends are revolutionising global industry and the regional economy.

With participants from across government, global and regional private sectors, regulatory bodies and the region’s top start-up talent, the Technology Week programme will explore the impact of Fintech, artificial intelligence, cybersecurity and cloud computing on the future of the GCC.

The TechnologyWeek will be anchored by two major ICT and entrepreneurship events – the Amazon Web Services (AWS) Summit (25 September) and the Innovation Forum, powered by MIT Enterprise Forum Pan Arab (28, 27 September) – alongside a range of other exhibitions, panel discussions and talks by global leaders.

As the cloud computing platform of Amazon.com, the AWS Summit will be the first of its kind in Bahrain, providing the international cloud computing community with a forum to connect and collaborate. The summit will offer businesses the opportunity to learn about AWS technology–one of the leading models of cloud storage infrastructure currently in existence.

Sponsored by the EDB and Investcorp, the Innovation Forum expands on similar themes, bringing together global experts and high-profile business representatives to focus on cutting edge technologies and scientific research.

Commenting on the Technology Week, H.E. Khalid Al Rumaihi, Chief Executive of the EDB said: “The impact of the technology and data revolution is only going to increase and it’s vital that the region gets ahead of the curve.The Technology Week diverse programme reflects Bahrain’s commitment to shaping the discussion on those trends and technologies that will affect our economies in the long-term. In bringing global and regional partners together from across government and the private sector, Technology Week offers a unique opportunity to showcase how technology is driving changes in productivity, business success and the diversification of regional economies.

“Home to the GCC’s leading ICT infrastructure, it is essential that Bahrain continues to foster the kind of innovative technologies and frameworks that have led to world-class companies choosing the Kingdom as their home for regional operations. It is events like Technology Week that allow us to ensure that Bahrain’s digital ecosystem remains world-class.”

As part of the Technology Week activities, Tamkeen will be hosting a Startup Bahrain competition with a total of $75,000 worth of prizes.Startups will have the opportunity to compete and showcase their work for a chance to be crowned as Startup Bahrain Champion and win $50,000 as well as a trip to Web Summit in Lisbon. The competition will also include a $20,000 for runner up and $5000 for people’s choice as the most voted startups on social media. Furthermore, Batelco will offer $3000 worth of prizes for visitors who engage actively on social media via @StartUpBahrain page.

-ENDS-

 

Notes to editors:

Further information:

Bahrain Economic Development Board

Tel: + 973 1758 9966

Email: Khalid.jamal@bahrainedb.com

Isa.mubarak@bahrainedb.com

About The Bahrain Economic Development Board (EDB)

The Bahrain Economic Development Board (EDB) is an investment promotion agency with overall responsibility for attracting investment into the Kingdom and supporting initiatives that enhance the investment climate.

The EDB works with the government and both current and prospective investors to ensure that Bahrain’s investment climate is attractive, to communicate the key strengths, and to identify where opportunities exist for further economic growth through investment.

The EDB focuses on several economic sectors that capitalise on Bahrain’s competitive advantages. These sectors include financial services, manufacturing, ICT, tourism, logistics and transport.

For more information on the Bahrain EDB visit www.bahrainedb.com; for information about Bahrain visit www.bahrain.com.

Real estate projects worth over US $26 billion in Bahrain’s pipeline

Manama, 10 September 2017:  Bahrain’s real estate sector is witnessing rapid expansion due to growth in demand for residential and retail development. The Bahrain Economic Development Board (EDB)’s economic quarterly report revealed growth in the sector reached 4.5% in the first quarter of 2017, contributing over US $1.7 billion to the economy.

Real estate transactions in Bahrain grew by 15.2% in the first quarter of 2017, reaching a total value of USD $770 million, an 8.1% jump compared to the same quarter in 2016.The retail and hospitality sector also witnessed rapid growth, while the hotels and restaurants sector emerged as the fastest growing sector during the first quarter of this year, recording a 12.3% year-on-year real rate of expansion.

According to statistics published by the Ministry of Housing, the number of residential applications pending allocation of units currently stands at 55,000 and is estimated to grow by 5,000 each year, and are driving the high demand for residential units in the Kingdom. Additionally, the influx of visitors to Bahrain in recent years has also contributed towards a growing demand for tourism and retail facilities. In 2016, the total number of arrivals to Bahrain increased by 6% from 2015 to 12.2 million visitors. The Kingdom welcomed 5.6 million tourists to Bahrain in the first half of the year, according to Bahrain Tourism and Exhibitions Authority (BTEA), representing a 14% increase from the first half of 2016.

Housing developments, both social and private, have increased in recent years and the Kingdom is currently witnessing more than 17 housing projects, which include some private projects. The Kingdom is also home to the Avenues Mall, a 83,700 sqm building to be opened later in the year, as well as other retail developments including Bahrain Marina and mixed-use development areas such as Bahrain Bay and Water Garden City.

Over US$11billion of mixed-use real estate projects will be showcased at the Bahrain Pavilion at Cityscape Global in Dubai. It will feature participation by the Bahrain EDB as well as the five major developers Bahrain Bay, a USD 2.5billion waterfront district; Diyar Al Muharraq, a progressive urban development including the iconic Dragon City; Durrat Al Bahrain, a hallmark island city; Canal View, canalside living at its finest in the heart of Dilmunia and Bahrain Marina, a trendy waterfront development in the heart of Manama.

Commenting on the opportunity for real estate investors in Bahrain and on the participation at Cityscape Global 2017 in Dubai, HE Khalid Al Rumaihi, Chief Executive of Bahrain EDB, said:

“Recent figures demonstrate the resilience of Bahrain’s real estate sector and highlight the increasing demand for housing, not only in the Kingdom but across the wider region. Strong growth in this sector has been supported by the implementation of economic and legislative reform and forward-thinking policies such as the public private partnership model by the Ministry of Housing and the recently issued Real Estate law.

“Cityscape Global is an excellent platform for developers to showcase their world-class projects to interested investors and we think Bahrain has great developments to offer and are pleased to be taking part for the third year in a row.”

Bahrain has a pipeline of large-scale infrastructure projects across a wide range of sectors valued at US$ 32billion, which will support growth within the real estate market and help maintain robust economic growth throughout the Kingdom. In addition to developing the necessary hard infrastructure, Bahrain is implementing soft infrastructure such as smart legislation, enabling investors to realise value from their capital.  A new regulation has also been developed in consultation with the private sector to specifically support growth in the Kingdom’s real estate sector.

For further information, please visit Bahrain Pavilion at stand 3F10 from September 11 to September 13 at Dubai World Trade Centre.

[folder-gallery fid=”15″ link=”file” columns=”3″ orderby=”rml” size=”medium”]

-ENDS-

Notes to editors:

About Real Estate Developers participating at Cityscape Global:

Bahrain Bay

Bahrain Bay is a US$2.5 billion luxury mixed-use development strategically located on the fringe of Bahrain’s business district with a master-planned design that combines the azure waterfront around a vibrant neighborhood of residential, commercial, corporate, leisure, retail and public realm all stretching over an area of 450,000 sqm. The project is home to an array of uniquely designed architectural icons such as the Four Seasons Hotel, Arcapita building, AlBaraka Tower, the headquarters of Al Baraka Islamic Bank headquarters and soon to be opened United Tower that will house the Wyndham Grand Hotel.   Construction is in full swing on the three tower luxury residential complex “Waterbay“ by Bin Faqih Real Estate Investment Co while on-site work has commenced on “AXA Tower ,“ the new regional offices of AXA Insurance Group.  On a parallel level, development of public realm has gained prime focus timing with the completion of upcoming projects and to support Bahrain Bay’s popularity as the choicest venue for community festivals and cultural concerts featuring international artists. The Public Realm will include restaurants, parks, promenades and walkways.

 

Bahrain Marina

Bahrain Marina, is a mixed-use development that aims to add a new distinctive waterfront to the Kingdom’s pristine coastline in Manama. The new destination will include a five-star hotel, serviced and freehold apartments, waterfront villas, a fully-integrated family entertainment center, cinema complex, boardwalk, marina, yacht club and a recreational waterfront space with dining and retail facilities.

This iconic world-class facility aims to enhance the infrastructure of Bahrain’s tourism sector by 2020.

 

Durrat Al Bahrain

Durrat Al Bahrain is urban living- island style.  As Bahrain’s most inspiring development, Durrat Al Bahrain is considered a landmark development.  Located on the south coast of Bahrain, this 21 km² development has been created across a cluster of 15 spectacular islands.  It hosts, among its many offerings, beautiful beachfront villas, parks and entertainment precincts, restaurants and a 400-berth marina. Upon completion, it will host executive apartments and offices, luxury hotels and spa resorts and premier retail malls. Durrat Al Bahrain will be the region’s most prominent seaside resort city, putting Bahrain on the global tourism map.

 

Canal View  

The Canal View development is located in Dilmunia Island and covers an area of 13,068 m2. The project includes luxury apartments that are a mere walking distance from Dilmunia Mall and are located near Bahrain’s main arterial roads, social infrastructure and the international airport.

 

Diyar Al Muharraq

Diyar Al Muharraq is one of the most visionary and progressive urban developments in the Kingdom of Bahrain; an all comprehensive, fully integrated modern city best described as a complete society incorporating a strong line-up of projects which include a vast variety of residential and commercial properties, ideal for both personal and investment purposes. Aimed at creating a long term and sustainable township, Diyar Al Muharraq is located on the northern shores of Muharraq and comprises of 7 islands with a total of 10 square kilometers of reclaimed land. Upon completion, Diyar Al Muharraq will encompass over 40 kilometers of waterfront with sandy beaches, and all the elements of a vibrant community ranging extensively from fully equipped educational facilities and schools, medical centres, recreation facilities, shopping malls, expansive parklands, hotels and marinas. Diyar Al Muharraq is to be a first of its kind development, one that aims to offers its occupants a safe haven for the ideal life.

 

Further information:

Bahrain Economic Development Board

Tel: + 973 1758 9936

Email: communications@bahrainedb.com

 

About the Bahrain Economic Development Board

The Bahrain Economic Development Board (EDB) is an investment promotion agency with overall responsibility for attracting investment into the Kingdom and supporting initiatives that enhance the investment climate.

The EDB works with the government and both current and prospective investors to ensure that Bahrain’s investment climate is attractive, to communicate the key strengths, and to identify where opportunities exist for further economic growth through investment.

The EDB focuses on several economic sectors that capitalise on Bahrain’s competitive advantages. These sectors include financial services, manufacturing, ICT, tourism, logistics and transport.

For more information on the Bahrain EDB visit www.bahrainedb.com; for information about Bahrain visit www.bahrain.com .

Bahrain welcomes first two entrants into regulatory sandbox

London based Tramonex and Dubai firm NOW Money set to expand to Bahrain as global fintech investment market hits $3.2 billion in Q1 2017

The Central Bank of Bahrain (CBB) has announced two entrants into its regulatory sandbox. Tramonex, a London-based forex cash management solution for businesses; and NOW Money, the Dubai-based account and remittance service for low-income workers in the GCC.

Launched in June, the Bahrain regulatory sandbox provides a virtual space for companies to test their financial technology based solutions, and is open to existing CBB licensees and other local and foreign firms. By offering firms an opportunity for expansion and innovation, the framework is expected to help boost fintech businesses around the globe and consolidate Bahrain’s position as a fintech and financial services hub.

For companies dealing in multiple currencies, Tramonex offers an efficient, quick and cheaper way of processing and transferring funds at your fingertips. The start-up focuses on facilitating conversion and settlement services to automate cross border transaction

s, and provides competitive services.

NOW Money is the first fintech company in the Gulf region to use mobile banking technology to provide accounts, financial inclusion and a range of low-cost remittance options to low-income workers. It aims to provide access to affordable financial services for everyone.

The Bahrain Economic Development Board (EDB) assisted and advised Tramonex and NOW Money in registering for the regulatory sandbox.

H.E. Khalid Al Rumaihi, Chief Executive of Bahrain EDB, said: “This announcement is a testament to Bahrain’s attractive investment proposition in the Gulf. Bahrain is a great testbed for innovative products in this space due to its size and easy market access to the GCC.

“The Kingdom is ready to be at the forefront of financial innovation and technology as global fintech investment reaches $3.2 billion. In addition to the development of the regulatory sandbox, we have a number of further initiatives we expect to be launched in the coming months including a venture capital fund-of-funds. We are seeing real signs of momentum in the sector and are excited by the potential it will bring.”

Khalid Hamad, Executive Director of Banking Supervision at CBB, said: “We are pleased to welcome the first two entrants into the regulatory sandbox, in the early stages of the framework’s launch. This initiative highlights the CBB’s continuous efforts as the Kingdom’s single regulator to update and develop the fintech ecosystem and enable industry players to create innovative and forward-looking fintech products while maintaining the overall safety and soundness of the financial system.”

Bahrain’s non-oil sector growth accelerates to 4.4% in first quarter of 2017

Total inward FDI stock just under 90% of GDP above regional and global averages.
Active infrastructure pipeline provided continued momentum, with USD3.2bn worth of projects having already broken ground.

Growth in the non-oil sector of Bahrain’s economy reached 4.4% in the first quarter of 2017, up from 3.7% during 2016, according to the Bahrain Economic Quarterly published by the Bahrain Economic Development Board (EDB).

This growth was driven by strong performance across the non-oil private sector, with momentum continuing to be supported by large scale infrastructure projects. Overall, during the first three months of 2017 the Bahraini economy expanded by 2.9%, in line with the 3% pace seen in 2016 as a whole.

The first three months of 2017 saw particularly strong growth in the hotels and restaurants, financial services and transportation and communications industries. Hotels and restaurants emerged as the fastest growing single sector during Q1, posting a 12.3% year-on-year real rate of expansion and financial services continued along its strong growth trajectory reported last year, posting an annual expansion of 8.3% at the end of Q1 compared to 5.2% at the same in 2016. The transportation and communications sector also performed strongly, with an annual real growth rate of 8.2% in Q1.

Underpinning the near term momentum in Bahrain’s non-oil economy is the large amount of investment in infrastructure that the Kingdom is experiencing. This includes the USD3bn Alba Line 6 project – which is set to create the world’s largest single-site aluminium smelter. USD1.1bn is being invested in the airport modernisation programme and a further USD335m earmarked for a new Banagas gas plant. Expressions of interest have been solicited for the construction of the King Hamad Causeway which will add to the existing King Fahd Causeway, connecting Bahrain to Saudi Arabia and serving as a platform for the GCC railway.

Active projects that are part of the GCC Development Fund also saw a further increase in their aggregate value. The cumulative total worth of GCC Development Fund projects that had broken ground by Q2 of 2017 reached around USD3.2bn. This marks a 111.3% increase on the active pipeline from Q1 of 2016.

Speaking on the publication of the report, Dr. Jarmo Kotilaine, Chief Economic Advisor of the Bahrain EDB, commented: “As the region continues its transition in a low oil price environment, the Bahraini offers further encouraging indications both of its resilience and the progress of diversification. The Q1 growth figures are very encouraging and underscore the impact both of the Government’s reform agenda and the powerful countercyclical impact of the unprecedented infrastructure project pipeline.

“We are confident that recent initiatives such as the creation of a regulatory sandbox for fintech and investment in creating the world’s largest single-site aluminium smelter will continue to support growth and to make Bahrain an attractive destination for businesses looking to access the opportunities in the region.”

Central Bank of Bahrain Announces Landmark Regulatory Sandbox for Fintech Startups

June 14, 2017

Manama, 14th June 2017 – The Central Bank of Bahrain (CBB) has announced new regulations to create a regulatory sandbox that will allow startups and fintech firms to test and experiment their banking ideas and solutions. The creation of the regulatory sandbox provides an opportunity for fintech businesses around the world to expand and thrive in the Gulf and strengthens Bahrain’s position as a fintech and financial services hub in the GCC.
The framework provides a virtual space for companies to test their technology-based innovative solutions, and is open to existing CBB licensees and other local and foreign firms. The testing duration is nine months, with a maximum extension of three months.
In order to be eligible, solutions need to demonstrate innovation, customer benefit, technical testing, and an intention to be deployed in Bahrain after the sandbox period ends.
The CBB recently issued the Regulatory Sandbox Framework directive, which includes the eligibility criteria, filing requirements and timeline for the process. This may be found on Bahrain Startup website (www.startup.bh) and CBB’s website on the following link: http://www.cbb.gov.bh/page-p-regulatory_sandbox_en.htm.
This is in line with the Kingdom’s efforts to further develop the ecosystem in place to encourage growth in the FinTech industry. Most recently, the Bahrain Economic Development Board (EDB) announced a partnership with FinTech incubator and ecosystem builder Singapore Fintech Consortium and asset management and advisory firm Trucial Investment Partners to develop a FinTech (financial technology) ecosystem and regulatory framework for the Kingdom. The agreement includes support in developing the related commercial and legal infrastructure required to initiate, nurture and sustain Bahrain’s FinTech ecosystem. It will pave the way for increased interaction between fintech firms in the Middle East via Bahrain and those in ASEAN via Singapore and will facilitate the entry of Singaporean FinTech companies into the Kingdom.
H.E. Rasheed Mohammed Al Maraj, Governor of the CBB, said: “These new initiatives are a continuation of the CBB’s efforts to provide the right mix of policies and products to develop and enhance the quality and competitiveness of services in the financial sector. We are living in an era of unprecedented changes mainly brought about by technological advancement, where we are witnessing how technology is defining financial services and CBB remains at the forefront of these developments to enable the industry to advance similarly.”
H.E. Khalid Al Rumaihi, Chief Executive of the EDB, said: “The launch of the regulatory sandbox is an initiative that follows on the directives of HRH the Crown Prince to prioritise innovation that supports sustainable high value job creation in the Kingdom. In order to grow the fintech industry, we know we need to create an ecosystem in which entrepreneurs can innovate and test their ideas – and the introduction of Sandbox regulations is one of the key steps towards ensuring that environment. Bahrain has always been an attractive proposition for fintech – particularly due to our unique offering in areas such as Islamic finance and payments, and we are looking forward to welcoming more local, regional, and international fintech firms.”
“The regulatory sandbox will enable industry players to apply innovative Fintech products while maintaining the overall safety and soundness of the financial system; We are pleased with the introduction of this regulation, which sets a very forward-looking policy that adapts with the times,” said Mr. Khalid Hamad, Executive Director of Banking Supervision.
Bahrain provided greater opportunities for fintech businesses in 2014, when the CBB initiated two new license types – payment services and card processing services – marking the entry of non-banking companies into banking services. To date Bahrain has issued 14 licenses for these two activities.
– Ends –
For more information, please contact:
External Communications Unit
Central Bank of Bahrain
Tel: +973 17547319/ 17547374
Email: media@cbb.gov.bh
Website: www.cbb.gov.bh

Bahrain’s Non-Oil sector growth reaches 3.7 in 2016

May 28, 2017

​- Resilience of non-oil sector means economy expands 3% for 2016 calendar year –
– Implementation of $32bn project pipeline provides additional momentum –
 
Growth of 3.7% in the non-oil sector helped to fuel overall economic growth of 3% in Bahrain in 2016, according to the latest figures published in the Economic Development Board’s Bahrain Economic Quarterly. This growth marks an acceleration over the 2.9% pace recorded in 2015 and came in spite of significant regional and global headwinds.
 
The non-oil growth (up from 3.6% in 2015) was driven by a number of sectors, with particularly strong performances in finance (one of the largest non-oil sectors, which grew 5.2% during the year), construction (which grew 5.7%) and social and personal services (which grew 9.1%).
 
This momentum in the non-oil sector was supported by the implementation of unprecedented levels of infrastructure investment. In particular, the GCC Development Fund has seen the volume of active projects double from USD1.6bn in 1Q16 to USD3.2bn in February 2017.
 
Bahrain has a priority programme of $32bn of infrastructure projects which are expected to continue to act as counter-cyclical growth drivers. These projects include the USD2.5bn ALBA Pot Line 6, an associated USD800mn power station deal, the USD1.1bn airport expansion project and a new USD355mn Banagas gas plant.
 
This impact of this investment underpins the expectation that non-oil growth will remain above 3% in 2017, despite ongoing regionwide fiscal consolidation.
 
Speaking on the publication of the report, Dr. Jarmo Kotilaine, Chief Economic Advisor to the EDB, commented: “2016 was an encouraging year for Bahrain’s economy. We continue to see resilience in the non-oil sector and this resilience helps to underpin the economic stability for businesses and investors in the Kingdom.
 
“This is important because the economic transformation taking place in the region is creating exciting opportunities for businesses in the Gulf the coming years. We know that it is vital not just to maintain economic stability but also to continue to pursue the structural, legal and regulatory reforms that will make it easier for companies to access those opportunities.”

Bahrain EDB signs three agreements to promote stronger economic ties with China

May 25, 2017

​Three deals were signed between Bahrain Economic Development Board (EDB) and  the China Hi-Tech Transfer Centre; Shenzhen Belt and Road Economy and Technology Cooperation Association; and Shenzhen Cross-Border E-Commerce Association, on the sidelines of a high-level Chinese business delegation’s visit to Bahrain. The deals aim to promote stronger economic ties between the two countries.

As part of the visit, the EDB hosted the China High-Tech Fair Bahrain Forum, where high level meetings were held between EDB officials, representatives from the private sector and Chinese officials and businesses. The event showcased business opportunities within Bahrain’s ICT sector.

HE Khalid Al Rumaihi, Chief Executive of the EDB, commented on the agreements signed: “The Government of Bahrain is fully committed to playing its part in China’s ‘One Belt, One Road’ mission of establishing a community of shared interests between China and the Arab World. Located at the heart of the Middle East, Bahrain is perfectly positioned to carry this vision forward.

“These agreements reflect our commitment to build on China and Bahrain’s already strong economic ties, to attract higher levels of investment and deliver high quality jobs in Bahrain.”

The first of the three agreements, signed with the China Hi-Tech Transfer Centre, aims to enhance cooperation in the area of ICT. It looks to do this by pledging regular and close contact between the two countries and through a mutual promotion of the China Hi-Tech Fair in Bahrain and neighbouring Gulf countries.

The second deal, with Shenzhen Belt and Road Economy and Technology Cooperation Association, has several key aims, including:
• Promoting the exchange of information, especially regarding general business environment and investment projects
• Exploring and facilitating emerging business opportunities and leveraging each other’s best policies
• Supporting an easy company registration process and aftercare assistance for businesses

The third MOU was signed with Shenzhen Cross-Border E-Commerce Association and aims to support in promoting and enhancing  cooperation between the two sides.

Many Chinese businesses including leading global ICT solutions provider Huawei, Bank of China, CPIC, Dragon City, China Harbour Engineering Company, and CIMC have already established operations in Bahrain as a means of accessing the wider Gulf market. This market is now calculated to be worth approximately US$1.5 trillion and is expected to reach US$2 trillion by 2020.

Bahrain to host first China High Tech Forum in the region

May 24, 2017

​- High Level Delegation Headed by the Vice Mayor of Shenzhen Coming to Bahrain as Part of the Forum
A High level Chinese delegation headed by H.E. Biao Chen, the Vice Mayor of Shenzhen Municipal Government is set to arrive in Bahrain later this week to attend the China High Tech Fair Bahrain Forum. The delegation includes 116 senior representatives from the Shenzhen Government and prominent Chinese companies.This is the first time the China High Tech Fair is held in the region, and is part of a wider roadshow the Shenzhen Government is planning to take to European countries in the next month. The High Tech Fair follow a number of visits exchanged between high-level Bahraini and Chinese government officials over the past years. The events will showcase investment opportunities in ICT in which Bahrain can offer Chinese businesses significant advantages.

The Chinese delegation will meet with officials from the EDB, the Bahrain Chamber of Commerce and Industry and representatives from Bahraini businesses over the course of their stay in Bahrain.

H.E. Khalid Al Rumaihi, Chief Executive of the EDB, commented: “Bahrain and China have both proven their commitment to strengthening trade and investment ties over the past few years, and this visit is a testament to the progress both nations have made. Since the ancient Silk Route days, China has been an important trade partner for us, and today, we are able to promote our competitive economic advantages to markets like China through events like these, with a view to attracting higher levels of investment and creating high quality jobs here in Bahrain.”

Many leading Chinese companies have operations based in Bahrain, including; leading global ICT solutions provider Huawei, Bank of China, CPIC, Dragon City, China Harbour Engineering Company, CIMC.

Bahrain delegations have regularly visited China and Hong Kong for the past three years and in 2015, Bahrain was the guest country of honour at the China International Fair for Investment & Trade. A total of 15 agreements were signed during the EDB’s highly successful visit to China that year, and another four agreements were reached in 2016.

Armacell breaks ground for own manufacturing facility in Bahrain – Investment expected to create approx. 100 jobs within the first three years of operation

May 17, 2017
Manama, 17 May 2017: Armacell, a global leader in flexible foam for the equipment insulation market and a leading provider of engineered foams, has today broken ground on the construction of its own manufacturing facility in the Bahrain International Investment Park.
Planned to start production in 2018, the Armacell Group, through Armacell Middle East Company S.P.C., will manufacture a comprehensive range of products for the GCC, including high-density materials and elastomeric insulation for heating, ventilation and air-conditioning (HVAC) systems. Growth within the construction sector is resulting in high demand for HVAC products in the region and the facility is expected to create approx. 100 jobs within the first three years.
The groundbreaking was attended by senior representatives from Armacell in the presence of H.E. Zayed R. Al Zayani, Minister of Industry, Commerce and Tourism and H.E. Khalid Al Rumaihi, Chief Executive of the Bahrain Economic Development Board (EDB).
H.E. Mr. Zayed R. Al Zayani said: “Bahrain’s government has built a robust manufacturing and logistics sector with world class infrastructure and supportive reforms and policies in place. We are seeing more companies taking advantage of this business-friendly environment and Armacell’s investment is a reflection of Bahrain’s strengths as regional hub for manufacturing and logistics. We look forward to supporting Armacell here in Bahrain and in the wider GCC”.
The Bahrain EDB supported Armacell during the set up process in Bahrain and H.E. Khalid Al Rumaihi, commented at the event: “Armacell is the latest in a long line of international manufacturing companies to base their regional operations in Bahrain. Bahrain remains the destination of choice for manufacturers who want to take advantage of the competitive benefits that our operating environment offers such as the availability of a highly skilled local work force, low costs and our strategic location at the heart of the GCC.
“In turn, investment from companies such as Armacell creates high quality jobs in the local market and plays an important role in helping us at the EDB achieve our objective of attracting investments that support national economic diversification efforts.”
Patrick Mathieu, President & CEO of Armacell International S.A., commented: “The greenfield construction of our own production site in Bahrain reinforces our commitment to the Gulf Region, strengthening our presence in this high-growth market where we have been operating since 2008. We are excited to begin our operations early next year, benefiting from Bahrain’s modern business environment, central location and world-class infrastructure.”
Guillerme Huguen, Vice President EMEA, added: “The construction of our own production site in Bahrain is the logical next step to serve the continuously growing domestic demand in the Gulf Region. The EDB has been supporting us from the start in our endeavour and we are very pleased with the substantial progress we have made since the beginning of this year.”
Establishing a manufacturing facility in Bahrain is part of Armacell’s goal to grow the group’s manufacturing footprint in the Gulf Region. Armacell has been active in the Gulf Region for a decade and is led by Neville D’Souza, General Manager of Armacell Middle East Company S.P.C.
Bahrain’s manufacturing sector is one of the key sectors in the Kingdom’s economy.  It accounts for around 15% of real GDP and has grown by 20% over the past 5 years and is the second largest contributor to Bahrain’s non-oil sector.
-ENDS-
Notes to editors:
Further information:
About The Bahrain Economic Development Board (EDB)
The Bahrain Economic Development Board (EDB) is a dynamic public agency with an overall responsibility for attracting investment into Bahrain, and is focusing on target economic sectors in which the Kingdom offers significant strengths.
Key areas of focus include tourism, manufacturing, ICT, and logistics and transport services as well as other sub-sectors. The Financial Services sector in Bahrain is particularly strong and the EDB supports in the continuing growth of the banking industry and key sub-sectors, including Islamic Finance, Asset Management, Insurance and Re-Insurance.

For more information on the Bahrain EDB visit www.bahrainedb.com; for information about Bahrain visit www.bahrain.com

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